It is a different kind of “invasion”. Ukraine and Russia are fighting a war in Eastern Europe, Israel, which is busy fighting the Hamas in Gaza strip, has sided with Ukraine in this war. Strangely, all three — Russians, Ukrainians and Israelis — together have “invaded” Southern Sri Lanka’s pristine, breathtakingly beautiful Indian Ocean beaches, pushing the local people out of business.
Sri Lanka’s thriving tourism industry in these parts is now being run and controlled by Russians, Ukrainians and Israelis, causing a huge loss of jobs and revenue to locals, who have been engaged in this sector for decades.
Sri Lanka, which was officially bankrupt just two years ago, has come out of that period in a record time, winning the praise of international community. Although life is still hard for a majority of Sri Lankans, there is also a hope of better days.
Sri Lanka is one of the top 10 tourist destinations in the world and a large number of tourists are arriving in Sri Lanka. But half of the business is going to Russians, Ukrainians and Israelis who are illegally running hotels to spas, water sports to trekking/transport.
THE HOLIDAY DESTINATION
Sri Lanka has been a favourite holiday destination for these three nationalities for over 20 years. After the Ukrainian war broke out in February 2022, thousands of Russian and Ukranian tourists have been stuck in Sri Lanka, unable to return home. On humanitarian grounds, the Sri Lankan government extended their visa many times in the past two years.
According to some estimates, the total number of Russians and Ukrainians currently living in Sri Lanka is over 25,000. About 10,000 Israelis are also there. This is a huge number for a country with just 22 million people (2.2 crore).
Some of these foreign nationals are running exclusive businesses, catering only to their fellow nationals and other white-skinned people, introducing a different kind of “apartheid” leading to racial tensions on the island, which is on a short fuse.
The local tour operators, transporters, hotel and restaurant owners are worried about loss of business and the new trend which can completely finish them in near future.
These people have started business with unsuspecting or greedy locals. Whites-run businesses have sprung up all over the Southern coast, from Galle to Hambantota. Some Russians have taken the land on 99-year lease from the locals paying them a huge money.
In these parts, a perch of land costs LKR 5 million (Rs 12 lakh in INR). 160 perch is one acre.
Under the Companies Act of Sri Lanka, a foreign company can register a private limited liability company, incorporated with a minimum of two shareholders, who can own the entire share capital of the company. Following incorporation, the company must comply with all statutory requirements imposed on domestic companies.
THE INVESTIGATIVE REPORT
According to an investigative report in Sri Lanka’s leading English newspaper ‘Daily Mirror’,
in addition to the Israeli and Russian nationals entering the local tourism market, Ukrainian tourists have also set up excursions, surfing lessons, three-wheeler and bike rental operations and boutique hotels, where the money is circulated among themselves. “They have their own ways of exchanging money such as undial (an underground banking system), hence local businesses cannot thrive due to the tourism sector anymore,” said Sampath Perera, President, Professional Tour Guide Alliance. “It is illegal for tourists to carry out excursions because they are not licensed tour guides. Some claim that their tourist visas have expired, but continue to remain in the country. This is a major challenge for us because it not only creates a competition among locals and foreigners, but it may also lead to clashes. Thereafter, bilateral ties among countries too will be severed. We therefore urge the authorities to streamline the legal framework, so that the tourism sector would help locals and local businesses to thrive. The Department of Immigration and Emigration has already issued a notice for Russian and Ukrainian tourists to leave the country within 14 days. I feel that there’s a political hand involved in this issue. Otherwise how can these foreigners act according to their own whims and fancies,” questioned Perera.
The Daily Mirror has also learned that when the season begins in Down South, tourists purchase rooms irrespective of whether they cost $400 or $1000 per night! Sharing his views on the seasonal influx of tourists, one local told the Daily Mirror that even a price of a king coconut soars to Rs 1,500 during that time of the year.
Kamanthi Wickramasinghe of ‘Daily Mirror’ writes that Businesses are run by tourists using tourist visas and this has become a serious cause of concern for locals in the area. Critics point out that though Sri Lanka needs more revenue its resources and the sovereignty of citizens cannot be infringed at the expense of tourists. Pleas made by Sri Lankans urging the authorities to streamline the legal framework, so that the tourism sector would help locals and local businesses to thrive. Many tour guides warn of possible consequences of neglecting the country’s pristine beaches
Russians, Ukrainians and Israelis are taking bookings in their own countries or in some other country of Europe receiving the money in US Dollar or Euro. Even the digital payment gateways used for daily transactions by these people in Sri Lanka are also linked to foreign banks completely depriving the Sri Lankan people and Government of any revenue.
After the locals and Sri Lankan government raised the issue, an alarmed Russian embassy in Colombo has issued a statement urging its nationals to adhere to local rules and customs.
Sri Lanka is going to elect its new President in October/November of this year and it will be one of the serious issues during the poll campaigns.
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